Correlation Between Thitikorn Public and UOB Kay
Can any of the company-specific risk be diversified away by investing in both Thitikorn Public and UOB Kay at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Thitikorn Public and UOB Kay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thitikorn Public and UOB Kay Hian, you can compare the effects of market volatilities on Thitikorn Public and UOB Kay and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Thitikorn Public with a short position of UOB Kay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thitikorn Public and UOB Kay.
Diversification Opportunities for Thitikorn Public and UOB Kay
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thitikorn and UOB is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Thitikorn Public and UOB Kay Hian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UOB Kay Hian and Thitikorn Public is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Thitikorn Public are associated (or correlated) with UOB Kay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UOB Kay Hian has no effect on the direction of Thitikorn Public i.e., Thitikorn Public and UOB Kay go up and down completely randomly.
Pair Corralation between Thitikorn Public and UOB Kay
Assuming the 90 days horizon Thitikorn Public is expected to generate 1.02 times less return on investment than UOB Kay. But when comparing it to its historical volatility, Thitikorn Public is 1.0 times less risky than UOB Kay. It trades about 0.06 of its potential returns per unit of risk. UOB Kay Hian is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 476.00 in UOB Kay Hian on September 3, 2024 and sell it today you would earn a total of 54.00 from holding UOB Kay Hian or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thitikorn Public vs. UOB Kay Hian
Performance |
| Timeline |
| Thitikorn Public |
| UOB Kay Hian |
Thitikorn Public and UOB Kay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thitikorn Public and UOB Kay
The main advantage of trading using opposite Thitikorn Public and UOB Kay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thitikorn Public position performs unexpectedly, UOB Kay can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in UOB Kay will offset losses from the drop in UOB Kay's long position.| Thitikorn Public vs. Thai Steel Cable | Thitikorn Public vs. Tropical Canning Public | Thitikorn Public vs. RB Food Supply | Thitikorn Public vs. Eureka Design Public |
| UOB Kay vs. Trinity Watthana Public | UOB Kay vs. KGI Securities Public | UOB Kay vs. Asia Plus Group | UOB Kay vs. Thitikorn Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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